New Delhi, Sep 17: Tobacco company ITC Ltd. has hiked the prices of select cigarette brands, including the prices of Classic Connect and Gold Flake Super Star.
After the latest MRP revision, a 20-cigarette pack of Classic Connect is now priced at Rs 428, a 9.74% increase from Rs 390 earlier, according to NDTV Profit.
The Gold Flake Super Star 10-cigarette pack will cost Rs 89, up from Rs 79, a 12.66% increase.
ITC has increased the maximum retail prices of select cigarette brands, according to dealer checks, with the revised-price stock already entering the market.
The latest price hikes come after multiple rounds of increases by ITC this year as cigarette makers adjust prices following changes in tobacco taxation, according to NDTV Profit.
Why ITC is raising prices?
From February 1, cigarettes and other tobacco products moved to a 40% GST rate, along with a new additional excise-duty structure.
Under the new regime, cigarettes attract additional excise duties ranging from Rs 2,050 to Rs 8,500 per 1,000 sticks, depending on their length and whether they are filtered. These duties are levied over and above GST of up to 40%, pushing up the overall tax burden and, in turn, retail prices across categories. Longer and filtered cigarettes saw the sharpest price increases as manufacturers pass on the higher tax costs to consumers.
In February, ITC had raised the price of Classic Connect from Rs 300 to Rs 360, and then to Rs 390, while Gold Flake Super Star rose from Rs 59 to Rs 70.
King-size cigarette brands such as Classic, Gold Flake Kings and Marlboro were among the segments most affected under the new regime. In the king-size category, per-stick prices reportedly moved to Rs 25-28 from around Rs 20 earlier.
